“Where focus goes energy flows.”
With today’s current work force generation, you can’t just tell your employees that they get commission. They need guidance to perform well. As a manager, you need to focus on being their own personal commission coach.
Just like a weight loss coach meets with their clients each week and discusses what they ate, what workouts they did, how many steps they took, a commission coach dives into the numbers to show their client what they are doing right and doing wrong.
That is what you need to do each week with your sales team—except focus on sales rather than weight loss. Show them where they succeeded and where they missed opportunities and left money on the table for themselves.
We recently just held a team meeting and we demonstrated this math problem to all of the team members. Their eyes light up at the end of the math problem seeing just how easy it is to make a commission and just how much commission there is to be made.
Lotion Per Person Average: A Math Problem
We have our own skincare brand at our salons “Island Lover Skincare” and we feature two different tanning serums: our Fountain of Youth Tanning Serum and our Blue Tansy Serum. Tuesday is our “Blue Tansy Tuesday” where we give out free samples of Blue Tansy to all of our guests, then try to sell them a bottle of it after they tried it.
Let’s start with a couple of facts:
- It’s Blue Tansy Tuesday.
- You worked 4 hours and waited on:
- 1 New Customer
- 29 returning customers
- You DIDN’T hand out samples.
- You DIDN’T tell folks what it does.
- You DIDN’T ask the guest after they used it if they liked it.
- You DIDN’T sell any blue Tansy, Fountain of Youth Serum or a Tan Extender to anyone.
That’s 30 total customers. Let’s continue.
- You do sell Prismatic at 40% OFF to the new customer as part of their 1st day promo.
- $130 Prismatic at 40% OFF = $78 lotion revenue
- $78 lotion revenue / 30 total customers = $2.60 LPPA.
You FAILED to earn commission so your paychecks were not as high as they could be.
Lotion Per Person Average: A Second Take
Nobody wants to sell without a commission. Let’s take the same example but with a different twist.
- It’s Blue Tansy Tuesday.
- During your 4 hour shift you saw the same
- 1 new customer
- 29 returning customers
That’s still 30 total customers. But this time, you..
- Handed out Blue Tansy to all 30 guests you waited on
- Ask them how they liked it
- Just let them know it’s was on sale today
Let’s see how you did…
- 2 out of the 29 returning guests loved your presentation and bought the special. 1 even added a tan extender at 1/2 off with their purchase.
- And you still sold Prismatic at 40% OFF to the new customer as part of their 1st day promo.
So in this scenario you sold
- $50 (Blue Tansy BOGO special)
- $50 (2nd Blue Tansy BOGO special)
- + extra $15 for half off tan extender
- And the $130 prismatic at 40% OFF = $78 lotion revenue
That equals $193 in total lotion revenue, divided by 30 customers = $6.43 LPPA. You qualified for a commission!
Now let’s see that commission check!
$193 in total lotion sales x 10% = $19.30 in commission
$19.30 in total commission / 4 hours worked = + $4.83 extra an hour you earned.
Lotion Per Person Average: A Third Take
Now, let’s do this a third time with yet another twist. Everything is the same but this time to that brand new guest on their first day because they need all of these products for their tan they bought:
- $78 worth of prismatic
- $50 BOGO Blue Tansy / Fountain of Youth tanning Serum
- $15 Tan Extender
So you have
- $50 (Blue Tansy BOGO)
- $50 (2nd Blue Tansy BOGO)
- + extra $15 for half off tan extender
That’s a total of $258.00. Let’s run the numbers.
Divided by 30 guests = $8.60 LPPA, which means you qualified for commission!
Let’s see that commission check!
$258 x 10% = $25.80
$25.80 / 4 = $6.45 extra per hour you earned.
The Bottom Line
You’re already doing all the hard parts: cleaning beds, the laundry, mopping the floor. The easy part is talking to guests and educating them on what products are essential to their tan.
It doesn’t require any more physical effort to talk, educate, and sell. Why not make an extra $4.83 – $6.45 an hour while you’re here? Money talks and people listen. Having consistent Commission Coaching Sessions with your team members will take your salons sales to the next level.
